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2011
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November
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- News Update - November 30, 2011
- Jr's went up 300-400% from depression levels in ea...
- November 29, 2011 Edition of the Stateside Report
- November 28, 2011 Edition of the Stateside Report
- November 24-25 Edition of the Stateside Report
- Excalibur receives permit to go into production!
- Happy Thanksgiving
- November 23, 2011 Edition of the Stateside Report
- November 22, 2011 Edition of the Stateside Report
- November 21, 2011 Edition of the Stateside Report
- In this video I mention a report from Haywood on M...
- November 17, 2011 Edition of the Stateside Report
- November 16, 2011 Edition of the Stateside Report
- November 15, 2011 Edition of the Stateside Report
- November 14, 2011 Edition of the Stateside Report
- 30 minute video from 2 of the senior statesmen in ...
- November 11, 2011 Edition of the Stateside Report
- November 10, 2011 Edition of the Stateside Report
- November 9, 2011 Edition of the Stateside Report
- November 8, 2011 Edition of the Stateside Report
- November 7, 2011 Edition of the Stateside Report
- You Tube Continues to have problems
- November 4, 2011 Edition of the Stateside Report
- November 3, 2011 Edition of the Stateside Report
- November 2, 2011 Edition of the Stateside Report
- November 1, 2011 Edition of the Stateside Report
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November
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2 comments:
Interesting news release from Timberline Resources Corporation (TBR)today. They have just completed the sale of their drilling subsidiary for $14 million. They will now focus on exploration and production on their Butte Highlands and South Eureka projects.
There is an interesting development that relates to the hedging position of Starcore International Mines Ltd. (SAM). Iberian Minerals Corp. has a hedge on its metals production. According to the company's Management Discussion and Analysis report on September 30, 2011, the company had a record income of $123.59 million in the 2011 fiscal year but it was reduced by $52.42 million by their forward sales contracts. These forward sales contracts will gradually come off this year and also in 2012. The profitability of the company will increase over the coming year.
IZN has received a $497.8 million takeover offer from Trafigura Baheer B.V., the world's third largest independent trading company on November 17, 2011. The takeover bid is a 39% premium to the IZN stock price on November 15, 2011, and is for $1.10/share. The news report on the Iberian Minerals takeover is here:
http://www.canadianbusiness.com/article/57604--iberian-minerals-recommends-497-8-million-takeover-offer-from-trafigura
Starcore International Mines Ltd also has forward sales contracts on its metals production. According to the company's Management Discussion and Analysis report for July 31, 2011, these contracts will expire on January 2013. This past fiscal year the forward sales contracts have incurred a loss of $12,541,00.00 on the company's gross revenues of $39,465,00.00
I think this this situation makes SAM look very interesting from a value perspective. As the hedges on company's metals production expire we will see the company gain greater revenue from its operations. A $12 million boost in annual revenue may increase the market cap of SAM by 50%. As the company's balance sheet improves it might also be an acquistion target for a larger company.
The company financial statements can be found at their website here:
http://www.starcore.com/s/FinancialStatements.asp
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